Best Graduate Accounts for 2007/2008

When it comes to graduate banking, Lloyds TSB and the Royal Bank of Scotland offer graduates a special interest-free overdraft for three years; and have great 0% overdraft limits. The interest free maximums are £2,000 in year one, £1,500 year two and £1,000 year three.

With Lloyds TSB’s graduate account the limits are guaranteed while RBS’ graduate limit is approved on a case-by-case basis. Yet to counter that, if you need to borrow over the limit, and its agreed RBS is cheaper at around 10% compared to Lloyds 16%; plus it also pays higher in-credit interest. Though if you do need more borrowing, in either case it is likely to be cheaper to get a special graduate loan.

As the difference between the is subtle, go for whats most convenient for you.

Do you have a Halifax or Bank of Scotland Student Account?
Although they don’t offer graduate accounts per say, most existing Halifax or Royal Bank Of Scotland student accounts holders can receive up to £2,750 interest free as part of their overdraft for the first year of graduation as an extension of their student account.

Therefore if you’re with either the Royal Bank of Scotland or Halifax, stick with them this year, then switch to the best graduate account the next. There is always a chance such good limits to switch to won’t be offered next year, but graduate account deals have been consistently improving with most banks.